On the evening of October 10, Wanhua Chemical issued an announcement on the suspension of production and maintenance of MDI and TDI devices in Yantai Industrial Park.
The announcement stated that according to the characteristics of the production process of chemical enterprises, in order to ensure the safe and effective operation of production equipment, in accordance with the annual maintenance plan, the company’s Yantai Industrial Park MDI unit (1.1 million tons/year) and TDI unit (300,000 tons/year) will be installed in 2022. Production will be suspended for maintenance on October 11, and the maintenance is expected to take about 45 days. This shutdown for maintenance is a routine maintenance carried out according to the annual plan and will not have any impact on the company’s production and operations.
In the field of MDI, Wanhua Chemical currently has a production capacity of 2.65 million tons/year, which is distributed in three regions: Yantai, Shandong, 1.1 million tons/year, Ningbo, Zhejiang, 1.2 million tons/year, and Kasinkbachka, Hungary, with 35 million tons/year. Thousands of tons/year. As the world’s largest MDI manufacturer, Wanhua Chemical’s production capacity accounts for nearly 30% of global production capacity, and the production shutdown for maintenance accounts for 41.5% of its total production capacity, which is a relatively large proportion. The distribution of global MDI production capacity is shown in the table below.
It is worth mentioning that Covestro’s 300,000 tons/year TDI device in Germany experienced force majeure due to a chlorine leak in August, and supply is not expected to be restored until November 30.
On September 30, Wanhua Chemical Group Co., Ltd. issued an announcement: the listing price of polymerized MDI in China is 19,800 yuan/ton (an increase of 2,300 yuan/ton from the price in September); the listing price of pure MDI is 23,000 yuan/ton (an increase from the price in September). Increased by 2,000 yuan/ton).
In addition to Wanhua Chemical, another MDI manufacturer BASF also announced that starting from October 2022, the aggregate MDI listing price in the distribution market will be 21,000 yuan/ton, an increase of 3,000 yuan/ton from the previous month.
It is reported that MDI manufacturers have recently introduced aggregated MDI listing prices for October. Compared with September, the increase reached 2,000-3,000 yuan/ton.
Now that Wanhua Chemical has announced that its equipment will be suspended for maintenance, it will inevitably have a certain impact on market supply and prices.
In the field of TDI, Wanhua Chemical currently has a production capacity of 650,000 tons/year, which is distributed in three regions, namely Yantai, Shandong with 300,000 tons/year, Fuzhou, Fujian with 100,000 tons/year, and Kasinkbachka, Hungary with 25,000 tons/year. Thousands of tons/year. As the world’s third largest TDI manufacturer, Wanhua Chemical’s production capacity accounts for nearly 20% of the global production capacity. The production shutdown for maintenance this time accounts for 46.2% of its total production capacity, which is also a large proportion. The distribution of global TDI production capacity is shown in the table below.